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I live in Scarborough and I'm getting an e36 on Monday. Im going to the MTO office on Monday to get it registered, plated etc. Im buying this car privately and understand that I have to pay a retail sales tax of 8% on either the purchase price or the vehicle's wholesale value, whichever is more.

Heres the thing. The wholesale value listed on the Used Vehicle Package for this car is $2900. Im actually paying $6000 for the car as its in mint condition and mechanically sound.

How much should I tell the MTO I purchased it for? If I say I payed something near the wholesale value I'll be saving myself a few hundred dollars in taxes. Does the MTO investigate or ask for proof of the purchase amount? I know theres the Bill of Sale but can't I write a lower amount, and pay the seller the real price? I'm hoping the MTO just goes by the amount listed on the Bill of Sale.

They will look on the bill of sale on the UVIP. Whatever the seller writes down the MTO will look at the amt and take the greater of the two. As Blackedout95 says, pay it and you won't have to worry about any future issues.

They won't investigate anything, and I think the same way as 3.2TL, you don't pay taxes when you buy something on Kijiji, why should you do it for used cars? And the higher amount rule is just pure bullshit, I think that's the only time where you can pay taxes on money that never even changed hands. When you buy something on sale in a store (same idea really) you pay taxes on the discounted amount, even if it is below wholesale value. This whole used car tax system is just another cash grab.

The MTO bill of sale is used for tax reasons, a private bill of sale is for peace of mind.

They won't investigate anything, and I think the same way as 3.2TL, you don't pay taxes when you buy something on Kijiji, why should you do it for used cars? And the higher amount rule is just pure bullshit, I think that's the only time where you can pay taxes on money that never even changed hands. When you buy something on sale in a store (same idea really) you pay taxes on the discounted amount, even if it is below wholesale value. This whole used car tax system is just another cash grab.

The MTO bill of sale is used for tax reasons, a private bill of sale is for peace of mind.

It isnt about comparisons, its a tax law. If the country were to take up your mentality you would stop paying tax on several things in daily life, why stop at a resale car?

If the law became taxation on jelly beans on kijiji, its a law. When you evade these taxes it only shifts the tax burden on honest citizens more so. Nothing to be proud of at all.